When do midlevel headcounts get budgeted?
Maybe it’s BS but I always hear that midlevel processes don’t really kick off immediately after a vacancy but rather after a formal sign-off / budgeting process that allows for headcount to be refilled or increased. When in the calendar year does that tend to happen? Before or after January bonuses get paid out? More like March? Trying to get some objective info given headhunters are so incentivized to keep telling you everything is just around the corner.
Based on the most helpful WSO content, midlevel headcount decisions often align with the bonus cycle and broader budgeting processes. Typically, firms assess their needs and budgets after bonuses are paid out, which for many firms happens in January or February. This means that midlevel hiring processes are more likely to kick off in the months following, such as March or later, once there is clarity on headcount approvals and financial performance.
Headhunters may push the narrative that hiring is imminent, but the reality is that these processes are often tied to formal sign-offs and budget reviews, which can take time.
Sources: When do bonuses get paid out for BBs/EBs?, Economic Consulting Q&A - Past experience at major firms, Please help me understand PE recruiting in the lower middle market., The Truth About IB Headcount in 2021, Cancelled Bonuses
Anecdotal evidence, but a mid-level left my firm in Q3 last year. They are just now starting interviews to backfill this role now that our firmwide budget has been approved.
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